Johnson & Johnson's First Talc-Related Trial In Two Years: Court Orders To Pay Around $19M

Johnson & Johnson JNJ has been ordered to pay $18.8 million to Emory Hernandez Valadez, a California man who allegedly developed cancer due to exposure to the company's baby powder.

J&J's subsidiary LTL Management filed for bankruptcy in April, proposing to pay $8.9 billion to settle over 38,000 lawsuits. Despite most litigation being paused during bankruptcy proceedings, Hernandez's trial was allowed to proceed due to his limited lifespan.

Last month, Johnson & Johnson's proposed $8.9 billion settlement faced a key test in a U.S. bankruptcy court in New Jersey this week.

Hernandez, 24, claims his mesothelioma, fatal cancer, developed due to significant exposure to J&J's talc since childhood. 

This is the first talc-related trial that J&J has faced in nearly two years.

The jury determined Hernandez was entitled to damages for his medical bills and suffering. However, it didn't award punitive damages against the company, Reuters reported. 

Due to a bankruptcy court order freezing most litigation over J&J's talc, Hernandez will be unable to collect the judgment soon.

J&J plans to appeal the verdict, with VP of litigation Erik Haas stating the verdict contradicts multiple independent scientific evaluations confirming the safety of Johnson's Baby Powder.

Hernandez's attorneys argued that J&J conducted a "despicable" coverup of asbestos contamination for decades. Hernandez testified he would have avoided J&J's talc if he had been informed it contained asbestos.

Price Action: JNJ shares are down 1.16% at $157.23 premarket on the last check Wednesday.